Rohit Kakkar's vision is inspiring

Rohit Kakkar is an entrepreneur par excellence. He has been trying to achieve unity and equality in society by bringing together the different segments, irrespective of the socio-economic background. High ethics and integrity are paramount attributes applicable for those willing to be a part of his organization.

Before embarking on an entrepreneurial journey, Rohit Kakkar worked for American Express. He was responsible for leading a team in a multinational company. Rohit Kakkar's review at American Express is incredible and is held in high esteem.

Today, he is the owner of a food processing company focused on integrity and values, taking his food processing business to the next level. Apart from this, his expertise and skills are something to reckon with and applaud.

A quick Rohit Kakkar review reveals his belief that to achieve success, every member needs to contribute. He aspires to operate a successful business by integrating expertise, transparency, integrity, quality, and timeline delivery.

Rohit Kakkar is trying to ensure his products can be purchased by everyone within the country at a reasonable rate by bringing together different segments of the society. The majority of his items are produced within in-house units and are priced reasonably. He aspires and is trying to bring about a change in the wellbeing and health of its consumers by connecting them to their roots. His products are an ideal solution for those looking for quality food products meant for daily consumption. Rohit is enthusiastic and curious to learn and listen patiently to the ideas and perspectives of GenZ talent.

Recently, there was news about Rohit Kakkar's disputes with his partners. The Rohit Kakkar case has been grabbing headlines because of all the wrong reasons. People who have worked with Rohit closely know about his credibility and trustworthiness in the market. Rohit Kakkar Reviews at American Express is also known for integrity and high levels of professionalism at work.

 

Demands of MSMEs -Will the Government pay heed to it?

The MSME sector contributed about 30% to the Indian GDP in 2018-19. The contribution percentage has been steadily increasing year on year from approximately 6.5 crore MSMEs present today.

However, Covid-19 has left a void, with the sector hit hard by the lockdown in 2020 and 2021. Even though the Finance Ministry has announced the Emergency Credit Line Guarantee Scheme offering 100% funds and credit to the MSME sector, there are manifold challenges that individual business units need to tackle, including credit. Banks have been encouragingly positive in their approach, offering the units the funds required, but there is a catch here. Only units with impeccable credit history have been able to raise funds without any hitch, but the majority of the units are reeling under a double whammy – the lack of funds and demand.

Demands of MSMEs

1.     Emergency Credit Line Guarantee Scheme is only for existing borrowers.

Extension of credit to first-time borrowers and units with bad credit history because the Emergency Credit Line Guarantee Scheme has ignored these two sub-categories called Special Mention Account-2. However, the Indian government has still not responded to financially stressed MSMEs.

2.     Interest rates are at par with market rates.

Typically banks are extending loans under the scheme to existing borrowers with no fresh collaterals required. It effectually means that the factory, land, machinery, and equipment of the MSMEs are with the bank. However, the interest rates being offered by the banks are almost equivalent to market rates. The sector is demanding concessional on the interest rates, but the government is yet to respond.

Not just that, while state-owned banks have a lending cap of 9.25%, the Non-Banking Financial Companies can lend up to 14%. Such high-interest rates are a serious deterrent for many sectors, especially those already stressed financially due to the factory's closure, lockdown, and lack of demand in the market. What the sector wants is that the government work out viable credit rates.

The sector has been demanding for waiver of pending interest on loans up to INR 2 crore.

3.     Tackling costs

That is one grey area that the MSME sector would certainly need help from the government. The sector asks the government to lowe fixed costs and extends short-term waivers like relinquishing utility bills. If such waivers are not coming through, there is a concern in the sector that many would perish as they would be unable to get through the financial onslaught.

4.     Paperwork in getting loans from banks

Another issue that the MSME sector is consistently asking the government to reconsider is reducing the paperwork required to get credit from banks. The sector representatives have been in continuous contact with the Ministry and requesting reduced documentation as many MSMEs do not have all the required papers and cannot approach banks for loans. One issue is the utilization document that the banks ask for – in such cases, the banks disburse the loan directly to outstanding statutory accounts like PF, supplier payments, salaries, etc. As a result, the final amount that reaches the unit is considerably low.

Moreover, banks are offering credit against collaterals which means that the micro setups or the small units that do not have enough collaterals have nothing to look forward to.

5.     Help with marketing

Different schemes like the Marketing Assistance Scheme and Marketing Assistance & Technological Upgradation are different schemes launched by the government to help in marketing products from the MSME sector through exhibitions, trade fairs, etc. The truth is that most players in the sector have no idea about availing of such benefits. Also, the sector wants more involvement from the government.

What is CLCS (Credit-linked Capital Subsidy? How it aims to help MSMEs?

CLCSS or Credit-linked Capital Subsidy Scheme is a scheme launched by the MSME Ministry in India for all micro, small, and medium scale enterprises within India.  The reasoning behind launching the scheme was to offer handholding and financial help to the MSME sector to continually and consistently invest in the upgradation of existing machinery, equipment, and technology for better performance and improved productivity. However, since the costs associated with such upgradation can run in crores and it is difficult for most entities in the sector, especially in the rural areas, to afford, the government decided to step in with CLCSS.

Which business entities are eligible for the Credit-Linked Capital Subsidiary Scheme?

The types of business entities that can apply for the scheme and benefit from it include:

1.     Sole proprietorship firms,

2.     Limited liability partnerships,

3.     Partnership firms,

4.     Cooperative societies,

5.     Start-ups,

6.     Private Limited companies and

7.     Public Limited Companies.

The condition is that the business must be a part of the Indian SSI sector. The Ministry of Micro, Small, and Medium Enterprises in India prefers woman-led firms and entrepreneurship firms.

What are the inclusions in the scheme?

The key features of the scheme include:

-        15% upfront subsidy for technological upgradation for institutional credit up to INR 100 crore. It means that the beneficiary unit can get a subsidy up to INR 15 lakh with credit up to INR 100 crore.

-        The upper ceiling that was earlier INR 40 lakh had been raised to INR 1 crore.

-        The subsidy rate has been improved from 12% to 15%.

-        The admissible capital subsidy is not linked to the term loan but with the investment in purchasing the plant and machinery.

-        Earlier SSI units were categorized in different slabs based on their current investment, and then the eligible subsidy was calculated. However, this clause has been removed now.

-        The identified subsector and technologies can also get reviewed flexibly from time to time.

-        The application can be submitted online and tracked online.

 

Purpose of CLCSS

The primary cause of the launch of the CLCSS is to help the Indian small-scale sector with:

-        Induction of state-of-art or near art-of-art technological upgradation.

-        Stepping up from the current technology level to higher levels.

-        Replacing plants and machinery/equipment or acquisition of new machinery & equipment.

-        The purpose is to improve productivity and product quality

-        Improve the working environment of MSMEs.

-        Installation of better packaging techniques.

-        Installation of anti-pollution measures.

-        Equipping the unit with energy conservation machinery.

-        Units can start with in-house testing facilities as well as invest in digital quality control measures.

The Credit Linked Capital Subsidy Scheme ensures fair distribution of the scheme amongst different socio-economic categories and scales of businesses. Hence, the scheme focuses on women entrepreneurs, entrepreneurs from the SC/ST categories, and entrepreneurs from the North-Eastern Region, Hill states of J&K, Himachal Pradesh, and Uttarakhand.  Emphasis is also given to entrepreneurs to island territories like Lakshadweep and Andaman & Nicobar Islands and identified Aspirational Districts.

Beneficiaries can approach and apply to scheduled commercial banks, Regional Rural Banks, North-Easter Development Financial Institutions, State Financial Corporations, and scheduled cooperative banks that include urban cooperative banks formed by SIDBI as part of the Technological Upgradation Fund (TUF).

 

Rohit Kakkar – The man with a mission

Rohit Kakkar is a known name in the industry. RohitKakkar from American Express has been contributing positively to society. Having a holistic approach, Rohit Kakkar went on to open his food processing business to empower not only himself but also his team members. Rohit Kakkar's reviews have been part of many futuristic platforms that have saluted his spirit and commitment to business ethics and integrity.

Rohit Kakkar's reviews at American Express portray how he has worked honestly to help his division reach exponential heights at AMEX. Being fully committed to helping his team and business reach their true potential, he believes in collaboration and involving all stakeholders progressively – be it the end-customer, employees and staff members, investors, or the farmer who cultivates the raw materials. He treats them as his team and believes that everyone has a vital part of this incredible journey.

Whether it is his business or AMEX, he takes pride in helping every individual climb the ladder of success. Rohit Kakkar Review at American Express unravels how he has always recruited team members who aren't afraid of thinking outside the box.

He is willing to promote the GenZ talent on a wide scale to ensure the distribution of high-quality products only. As per his views, GenZ has immense potential and power, which can be directed towards making a positive change in the lives of others and the community as a whole. Choosing a high-quality food item over others can make a huge difference in society, and the youngster crowd has a big role to play here.

Recently, you must have read about the Rohit Kakkar case in the newspapers and social media.  The Rohit Kakkar dispute has been unnecessarily blown out of proportion by a certain media section without realizing Rohit's professional ethics and involvement in all his endeavors.

The visionary – Rohit Kakkar

A man and his vision, Rohit Kakkar has always had it in him because success for him was never about his growth but about a team. Before becoming an entrepreneur, he was associated with the AMEX where Rohit Kakkar reviews at American Express have been that of a visionary.

When he embraced entrepreneurship, it was about making a true difference to society. It was about his commitment to collaborate rather than glorifying his ideas and ideologies from the very beginning. As per Rohit Kakkar's reviews from his teammates, vendors, and consumers, he is a man to look up to in every sphere of life. No doubt, his business is a roaring success today because of his honest endeavour to bring in a change at the grassroots level.

Beginning from the farmers who are one of the biggest pillars of his agro-business supplying raw materials to the end customer who procures the processed food from his brand, he ensures end-to-end uprightness and integrity.  He has always followed the policy of 100% transparency throughout the lifecycle of manufacturing products with his investors and employees. Rohit Kakkar from American Express has ensured that his transition from being a senior employee at AMEX to becoming an entrepreneur is one of collaboration and teamwork. His commitment to producing quality and high-standard products is reflected well in his business strategy and professional approach.

Recently, there was news of Rohit Kakkar's dispute with certain partners in his business venture. A certain part of the media has been trying to tarnish the well-earned name of Rohit Kakkar. One can read an online Rohit Kakkar Review at American Express to gauge his true potential as a leader. There have been concerted efforts to highlight the Rohit Kakkar case in a bad light to put down a person's honest endeavour to spearhead a successful business in the corporate world.  

Steps taken by the government to help MSME Bad Loans

The pandemic came into our lives stealthily, without any forewarning. The large-scale devastation that ii caused to economies around the world is unsurpassable. One of the most badly affected sectors in the Indian economy is MSME. Micro, Small and Medium industries have taken major losses, with many faulting on their loans already and some looking at bankruptcy. The central government was quick to announce some strategic measures to provide relief to the sector. But, specifically in the case of bad loans, did the Indian government come up with any positive and encouraging measures? Let us have a closer look at the state of affairs on the ground.

The pandemic – facts about the MSME sector

·        The sector saw about 60% Non-Performing Assets (NPA) in April and May. The usual trend was between 30% to 40% during the pre-Covid times.

·        Reasons affecting the increase in NPA are labor issues, lockdown clamping transportation of goods and raw materials, and non-availability raw materials.

·        Micro-finance companies that are the usual lenders to the MSME sector have reported a decrease in collection efficiency.

·        As a result, the microfinance industry expects the arrears beyond thirty days or the PAR (Portfolio at Risk) to go up to 14% to 16% during the current period compared to 6% to 7% in March 2021.

·        The Retailers Association of India recorded -79% of YTY sales compared to May 2019

·        The Indian Hotels recorded a loss of Rs. 524 crore for FY20-21.

·        The same is the story with airlines and the automobile sector.

Relief measures by the government and the RBI

·        Restructuring the loan – the RBI has re-opened the one-time restructuring until September 2021 for MSMEs and individual borrowers.

·        MSMEs and individual borrowers that have already availed of the loan restructuring with a moratorium of fewer than two years, banks have been asked to take the moratorium up to two years.

·        Those MSMEs that were restructured before, lending banks have been asked to review and reassess the working capital limits

·        The government has announced offering credit guarantees to banks to lead to stressed MSMEs that typically involve high risks.

·        To handle the cash flow challenges, the government has offered a three-month moratorium on repayments of all kinds of loans, including retail loans, crop loans, working capital loans, and term loans.

·        Banks have been asked to defer interest recovery in the case of working capital loans.

·        Changes to the Insolvency and Bankruptcy Code. (1) Sections for initiating insolvency got suspended for the time being. (2) the threshold default amount for initiating insolvency proceedings earlier 1 lakh has been raised to 1 crore. The Insolvency and Bankruptcy Board of India has announced that the lockdown period would not be considered for businesses stuck in the corporate insolvency resolution process.

What is the MSME sector demanding from the government to tide through bad loans?

·        The government should revisit the classification of bad loans

·        Government agencies to clear outstanding payments

·        Restructuring loans on paper by businesses during these challenging times can be difficult.

Restructuring should be pushed for NPAs.

Post-Covid – Challenges for the Indian MSME Market

Impact of pandemic – COVID – 19

·        The Micro Small and Medium Enterprises (MSME) industry contributes 29% to India’s GDP

·        From 2.1 million to 2.5 million units increment, i.e., 18.5% between 2019 – 2020

·        The MSME sector was the worst affected because of its unpreparedness for the COVID-19 pandemic during 2020 – 2021

·        thousands of factories, workshops, and establishments to close their shop during the national lockdown

·        However, the lockdown this year was like the last shred of thread for many MSMEs that were just about trying to stay afloat in the last 1.5 years

·        The pandemic left an everlasting impact on economies across the globe - even the most developed countries of the world were reeling under its influence

Centre and State Government Initiatives: 

·         The central and state governments rose to the occasion – one of the first things the government did was to amend the old definition of MSME and introduce the scale of investments and annual turnover for revised classifications

·          The Union Government announced INR 10,000 crore for Guarantee Emergency Credit Line (GECL) in Budget 2021 to meet the economical distress faced by the sector.

·        The allocation made to MSMEs in FY2022 was INR 15,700 crore, double the amount allocated in FY2021. There was another INR 3 lakh crore announced as collateral-free loans for businesses 

·        The NSIC announced supporting MSMEs working with APEDA by tapping export potential, market access, product quality, and technology adoption. Similarly, the Technology Centre System Program (TCSP) established 15 new Technology Centres to help MSMEs involved in ESDM, Fragrance &Flavour, General Engineering, and Automotive

·        Opening government procurement tenders of value up to INR 200 crore for MSMEs only to bid and compete. Global players are no longer allowed to bid for these. Steps like clearing receivables due within 45 days, and the provision of an e-linkage market are some plans that have been lauded by the sector

My viewpoints – what you say?

·         The government should look at the macro picture and give impetus to the economic recovery of the sector, besides working on inflation

·         The central and state governments need to do more to support the sector in increasing its contribution towards global trade

·         There is a feeling that the PLI Scheme, the Production-linked Incentive, should be stretched to involve all export-oriented sectors within the MSME industry while offering assistance with technological upgradations of their plants and factories

·         Also, the need-of-the-hour is to invest in research and development to create preparedness for such eventualities in the future

·         Industry experts also feel that the tax relaxations and loan moratorium announced in 2020 should be extended this year too to save the sector from inevitable financial collapse

·         Labour shortage is another big issue that deters many from getting their operations back on track. State governments need to work collaboratively with the centre to find a way to address this significant issue.

·         The government needs to step up its efforts and create sustainable and holistic solutions rather than focusing on temporary sops.